The Rent Vs. Buy Decision In 2022's Interest Rate Environment (And Lofty Market) | Money With Katie Podcast

When I did a rent (and invest) vs. buy analysis back in January 2021 with a 2.6% interest rate, the results were pretty neck-and-neck. As rates climbed this year, I figured it would be fun (I’m using the word “fun” loosely) to revisit the exact same scenario with the higher rate.
Depressingly, when we recorded this episode just last week, the rate was 5.95%. In the course of a single week, it’s now surpassed 7% as of publish (9/27/2022). How have the rates changed the math now and how does one realistically budget for a median home in the US today with 6+% 30-year fixed rates? Let’s find out.
I'm also joined by Andy Taylor, VP & GM of Credit Karma Home (link to discuss breakeven costs, refinancing, and borrowing against home equity.
Episode transcriptions can be found at link
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Mentioned in the Episode

Summer 2022 interest rates: link

Early 2021 rent vs. buy analysis: link

"Average net worth of homeowners," from CNBC: link

Quit Like a Millionaire by Kristy Shen: link

Data on home ownership averages: link

Average median home value, from The Motley Fool: link

Private mortgage insurance: link

Average homeowners insurance: link

Average property tax rate: link

Average mortgage rate for 30-year term: link

Amortization calculator: link

Paying interest first in mortgage payments: link

Average broker's commission: link

Average closing costs: link

Average 3% rental increases: link

IRS Standard Deduction: link

Rule of 150: link

28/36 Rule: link

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